THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Sapient Corporation (SAPE)

4/28/2006 Proxy Information

Bruce D. Parker served as Executive Vice President of Sapient Corporation from December 1999 until his retirement in July 2002.

4/22/2005 Proxy Information

Bruce D. Parker served as Executive Vice President of Sapient Corporation from December 1999 until his retirement in July 2002.

4/4/22/200513/2004 Proxy Information

Bruce D. Parker served as Executive Vice President of Sapient Corporation from December 1999 until his retirement in July 2002.

Investment in HWT, Inc.

On January 24, 2003, we increased our ownership percentage in our subsidiary HWT, Inc. (“HWT”) to 69% by purchasing a total of 587,092 shares of HWT common stock from Messrs. Greenberg and Moore, for a total purchase price of $557,737, in cash. The purchase price per share paid to Messrs. Greenberg and Moore was $0.95, which represented a substantial loss from their cost basis per share of $5.00. Messrs. Greenberg and Moore are no longer stockholders of HWT. We also commenced a tender offer on January 24, 2003 to purchase the remaining shares of HWT, for $1.05 per share, in cash. The tender offer period expired on February 24, 2003. As a result of the tender offer, we purchased a total of 927,395 shares of HWT common stock, for a total purchase price of $973,765, and our ownership percentage in HWT increased from 69% to 85%.

Prior to engaging in the above-referenced transactions, our Board of Directors first obtained an independent valuation of the fair market value of HWT’s common stock. The valuation firm concluded that the fair market value of each share of HWT common stock was between $1.05 per share and $1.29 per share. After considering this valuation, the Board of Directors decided that the Company should offer to pay $1.05 for each outstanding share of HWT common stock in the tender offer, and $0.95 per share for each outstanding share of HWT common stock owned by Messrs. Greenberg and Moore. The Board of Directors believed that the $0.95 per share price for Messrs. Greenberg and Moore was advisable to counter any perception that Messrs. Greenberg and Moore received a favorable price for their HWT shares because of their positions as Sapient executive officers and Directors. The Board of Directors then obtained a fairness opinion, in which the valuation firm opined that the $1.05 and $0.95 purchase prices were fair, from a financial point of view, to Sapient stockholders. The firm did not express any opinion as to whether the $1.05 or $0.95 purchase prices were fair to the stockholders of HWT or Messrs. Greenberg and Moore, respectively.

4/24/2003 Proxy Information

Investment in HWT, Inc.

In 1998, we and certain third parties created HealthWatch Technologies, LLC ("HealthWatch") for the purpose of performing Medicaid fraud, abuse and overpayment detection and collection services to state governments. HealthWatch was created after our Board of Directors determined that it would not be in Sapient's best interest to directly provide such services. Certain family members of Messrs. Greenberg and Moore were also investors in HealthWatch. At June 30, 2000, we owned 44% of HealthWatch's outstanding equity interests and the family members of Messrs. Greenberg and Moore owned approximately 12% of HealthWatch's outstanding equity interests. In addition, Messrs. Greenberg and Moore had loaned HealthWatch approximately $2.4 million.

On July 2, 2000, HealthWatch was converted into HWT, Inc. ("HWT"), and we invested an additional $2.0 million in HWT. This additional investment resulted in our assuming control of HWT as of that date. The loans outstanding to Messrs. Greenberg and Moore, together with accrued interest at an annual rate of 8%, were converted into HWT common stock at the time of this additional investment. After the July 2000 investment, we owned approximately 55% of HWT's common stock, and Messrs. Greenberg and Moore and certain of their family members owned approximately 21% of HWT's common stock. The financial accounts of HWT have been included in our consolidated financial statements since July 2000.

On January 24, 2003, we increased our ownership percentage in HWT to 69% by purchasing a total of 587,092 shares of HWT common stock from Messrs. Greenberg and Moore, for a total purchase price of $557,737, in cash. The purchase price per share paid to Messrs. Greenberg and Moore was $0.95, which represented a substantial loss from their cost basis per share of $5.00. Messrs. Greenberg and Moore are no longer shareholders of HWT. We also commenced a tender offer on January 24, 2003 to purchase the remaining shares of HWT, for $1.05 per share, in cash. The tender offer period expired on February 24, 2003. As a result of the tender offer, we purchased a total of 773,151 shares of HWT common stock, for a total purchase price of $811,809, and our ownership percentage in HWT increased from 69% to 85%.

Prior to engaging in the above-referenced transactions, our Board of Directors first obtained an independent valuation of the fair market value of HWT's common stock. The valuation firm concluded that the fair market value of each share of HWT common stock was between $1.05 per share and $1.29 per share. After considering this valuation, the Board of Directors decided to offer to pay $1.05 for each outstanding share of HWT common stock in the tender offer, and $0.95 per share for each outstanding share of HWT common stock owned by Messrs. Greenberg and Moore. The Board of Directors believed that the $0.95 per share price for Messrs. Greenberg and Moore was advisable to counter any perception that Messrs. Greenberg and Moore received a favorable price for their HWT shares because of their positions as Sapient executive officers and Directors. The Board of Directors then obtained a fairness opinion, in which the valuation firm opined that the $1.05 and $0.95 purchase prices were fair, from a financial point of view, to Sapient shareholders. The firm did not express any opinion as to whether the $1.05 or $0.95 purchase prices were fair to the shareholders of HWT or Messrs. Greenberg and Moore, respectively.

We engaged in the above-described transactions for two reasons. First, we believe that HWT continues to be a good strategic fit with our long-term business objectives. By increasing our ownership in HWT, we are able to more closely align HWT's business, financial results and executive management with its own. Second, we purchased all of the HWT shares owned by Messrs. Greenberg and Moore in order to eliminate any appearance of a potential conflict of interest that might be deemed to arise from Messrs. Greenberg and Moore owning stock of both HWT and Sapient, while also serving as our Co-Chairmen and Co-CEOs. Although we do not believe that their ownership of HWT shares has presented any actual conflict of interest to date, we wanted to avoid the possibility of any such conflict arising in the future.

Issuance of Convertible Notes

On January 31, 2000, we entered into a strategic relationship with a client which included, among other things, Sapient becoming a preferred supplier to that client and its numerous affiliated entities. As part of the relationship, Messrs. Greenberg and Moore each issued a $10.0 million convertible note to the client. Messrs. Greenberg and Moore entered into the convertible notes after our Board of Directors determined that it would not be in our best interest to directly enter into such a transaction. The notes were convertible into shares of our Common Stock owned by Messrs. Greenberg and Moore at a conversion rate equal to the closing price of our Common Stock as of the close of business on the date the convertible notes were executed. The client's ability to convert the notes was subject to certain vesting restrictions, based on the client's payment of certain levels of consulting revenues within prescribed timeframes. During the three months ended June 30, 2002, Messrs. Greenberg and Moore each repaid these notes in full. The client had not converted any portion of the notes into shares of our Common Stock prior to the repayment and there are no future conversion rights which remain in existence.